Corporate Fraud Handbook: Prevention and Detection, 4th Edition

CHAPTER 5

Check Tampering

Case Study: A Wolf in Sheep’s Clothing

Melissa Robinson1 was a devoted wife and the mother of two adorable children. She was very active at her children’s school and was known as a charitable person, giving both her time and money to various organizations throughout the community.

  She spent a good portion of her time working for a worldwide charitable organization chapter in Nashville as the executive secretary. In fact, her fellow employees and club members perceived Robinson’s donation of time and hard work as nothing less than a godsend. “Even if somebody had told [the board of directors] that this lady was stealing,” recalls certified fraud examiner and CPA David Mensel, also a member of the organization, “they would have said ‘Impossible, she’d never do it.’”

  However, all these accolades could not obscure one cold fact: Melissa Robinson was a thief. As executive secretary, she was one of two people in the organization allowed to sign checks on its bank accounts. As a result, the club was bilked out of more than $60, 000 over five years, until club members put an end to Robinson’s scam.

  The Nashville chapter of the organization was very much like other charitable entities—they engaged in fund-raising activities, such as selling peanuts or candy bars on street corners around the holiday seasons. Although a percentage came in check form, most ...